Digital video and entertainment system provider
boosted its second-quarter guidance on continued strength in consumer demand for DVDs and DVD players.
The company said it now expects to earn more than 34 cents a share in the second quarter, above its previous guidance of 24 cents to 28 cents and ahead of the consensus estimate of 28 cents, according to Thomson Financial/First Call.
ESS also raised its revenue guidance, saying it should see revenue greater than $84 million, above the previous forecast of $76 million to $79 million. Analysts polled by First Call were looking for $78 million.
In April, ESS said it shipped more than 2 million DVD chip units, and the company said its current quarter shipments will top that level again. For the year, ESS expects to ship over 6 million DVD units.
In a press release, ESS CEO Robert Blair, said, "When we increased our second-quarter guidance, we were seeing strong demand for all of our video products. This demand has continued to be strong as our new customers ramp up their production. Our performance this quarter reflects our customer's success in the retail market and the rapid transition to DVD players with progressive scan technology."
Blair added that the second half of 2002 is looking stronger than expected. The company expects to provide new second half guidance in its earnings report in July.
Shares of ESS Technology closed at $17.75 Monday before the updated guidance.